1. Operating Segments

The Group has two reportable segments, Retail and Car Servicing, which are the Group's strategic business units. Car Servicing became a reporting segment of the Group as a result of the acquisition of Nationwide Autocentres on 17 February 2010. The strategic business units offer different products and services, and are managed separately because they require different operational, technological and marketing strategies.

The operations of the Retail reporting segment comprise the retailing of automotive, leisure and cycling products through retail stores. The operations of the Car Servicing reporting segment comprise Car Servicing and repair performed from autocentres.

The Chief Operating Decision Maker is the Executive Directors. Internal management reports for each of the segments are reviewed by the Executive Directors on a monthly basis. Key measures used to evaluate performance are Revenue and Operating Profit. Management believes that these measures are the most relevant in evaluating the performance of the segment and for making resource allocation decisions.

The following summary describes the operations in each of the Group's reportable segments. Performance is measured based on segment operating profit, as included in the management reports that are reviewed by the Executive Directors. These internal reports are prepared in accordance with IFRS accounting policies consistent with these Group Financial Statements.

All material operations of the reportable segments are carried out in the UK and all material non-current assets are located in the UK. The Group's revenue is driven by the consolidation of individual small value transactions and as a result Group revenue is not reliant on a major customer or group of customers. All revenue is from external customers.

Income statementRetail
£m
Car Servicing
£m
52 weeks to
30 March 2012
Total
£m
Revenue 752.3 110.8 863.1




Segment result before non-recurring items 92.8 6.6 99.4
Non-recurring items 1.9 1.9
Segment result 94.7 6.6 101.3
Unallocated expenses(1)

(2.2)
Operating profit

99.1
Net financing expense

(5.0)
Profit before tax

94.1




Taxation

(25.7)
Profit for the year

68.4
Income statementRetail
£m
Car Servicing
£m
52 weeks to
1 April 2011
Total
£m
Revenue 771.6 98.1 869.7




Segment result before non-recurring items 123.3 7.0 130.3
Non-recurring items (7.5) (7.5)
Segment result 115.8 7.0 122.8
Unallocated expenses(1)

(2.2)
Operating profit

120.6
Net financing expense

(2.5)
Profit before tax

118.1




Taxation

(32.6)
Profit for the year

85.5
  1. Unallocated expenses have been disclosed to reflect the format of the internal management reports reviewed by the Chief Operating Decision maker and include an amortisation charge of £2.2m in respect of assets acquired through business combinations (2011: £2.2m).
Other segment items:Retail
£m
Car Servicing
£m
52 weeks ended
30 March 2012
Total
£m
Capital expenditure 15.2 4.5 19.7
Depreciation expense 19.1 2.0 21.1
Amortisation expense 2.7 2.7
Other segment items:Retail
£m
Car Servicing
£m
52 weeks ended
1 April 2011
Total
£m
Capital expenditure 16.6 6.2 22.8
Depreciation expense 19.1 1.3 20.4
Amortisation expense 2.5 2.5

There have been no transactions between segments in the 52 weeks ended 30 March 2012 (2011: £nil).

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